Posted on 08/18/2021 4:59:43 PM PDT by pfflier
I bought a 2018 Expedition, 42,000 miles.
I looked at several extended warranties, then bought a $5,000 CD to cover costs down the road.
If I don’t need it, I’ve still got my capital, and I’m earring a pittance in interest; if I do need it, I’m probably still out less than the cost of the warranty + deductibles.
Take the money you would have spent on an extended warranty and stick it in the bank. Reserve that money for when you actually need a major repair. You will almost always come out ahead.
There's a reason why people constantly get calls from telemarketers about extended warranties. These are extremely profitable for those who are able to sell them.
The selling point of these extended warranties is to provide "peace of mind" but if you have cash in the bank to handle any unexpected car repair, that's even better peace of mind in my book. And now YOU are the one who keeps the profit when fifteen times out of sixteen, your car makes it just fine through its life cycle without need of a major repair.
Keep up with the oil changes, the brakes and the other recommended maintenance cycles and there is very little chance your car is going to have a catastrophic mechanical failure.
Even better, set up a separate savings account for just your car. Start it with the money you saved by NOT getting an extended warranty and then throw $50 to $100 into it each month. When your car is paid off, take what was your car payment and stick that in your bank account each month. Before you know it, you'll have the cash to buy your next car outright AND have money left over for any unexpected repairs.
I would not say Subaru is necessarily a better car than a Toyota, or even a Ford for that matter. Almost every manufacturer puts out decent cars these days. The key as always is how you maintain them. I'm almost religious about getting the routine maintenance done according to the manufacturer's recommendations. That's why I use the dealer's service department - even though I know it costs a little money to use them as opposed to using "Joe's Auto Repair" down the street.
I’m driving a 2003 Camry SE. It’s a jet.
If I bought the extended warranty for every car I’ve bought, mine, wife’s, kids, I’d probably have enough money to buy another car. lol
When Suburu exists why buy a Toyota?
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Why buy a Subaru unless you LIKE spending $2500 on head gasket/timing chain repairs?
We have never purchased an extended warrant for any product, including motor vehicles, appliances, electronics, etc. Statistically, nearly all products with inherent defects fail within the warranty period and usually within a few months of purchase. If the product survives the warranty period, it will usually last a long time with regular and proper maintenance. There are exceptions, of course, but for most people, they will pay more for the extended warranty than they will for covered repairs.
Ask yourself this: If extended warranties are such a great deal for the consumer, then manufacturers and retailers would not be hard-selling extending warranties. They do so because extended warranties earn a high commission for the salesperson, and the provider of the extended warranty takes in a lot more from the consumer than they pay out in repairs.
https://www.consumerreports.org/car-repair/get-an-extended-warranty-for-your-car/
From the article: “The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says a money expert and radio talk show host, Dave Ramsey. “I don’t recommend buying extended warranties, ever. If you can’t afford to repair your car, then you can’t afford the car.”
I have decided that I am probably not going with the extended warranty based on the car's performance so far, and mileage and use profile.
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